When your individual or business clients need timely access to liquidity, the Insurance-Backed Line of Credit (IBLOC) provides convenient access to funding without selling-off portfolio or other assets. With an IBLOC, your clients can access an interest-only, revolving line of credit for up to 95% of the cash value of eligible individual or corporate-owned whole life, universal life, and indexed universal life insurance policies.1-3
IBLOC For Whole Life Insurance
From college tuition to taxes and emergency funds, the IBLOC can help your clients manage a wide variety of planned and unplanned cash needs.4
1. Policy must be in effect for at least 12 months at the time of credit application. Line of credit is contingent on life insurance policy remaining in good standing. The insurance policy owner must be the borrower. lnsurance policy must be issued by one of the following approved insurance providers to be eligible as IBLOC collateral: Guardian, MassMutual, Northwestern Mutual, NY Life, John Hancock, Penn Mutual, Ameritas Life Insurance Corp, Security Mutual Life. There may be an adverse tax consequence to clients pledging the policy and as such, we strongly advise consulting with a tax advisor before pledging the policy as collateral for a loan.
2. Subject to credit approval and underwriting.
3. Collateral Lending Value is an amount equal to the sum of the then cash surrender value of the policy to which the pledgor is entitled, multiplied by such percentage as The Bancorp Bank, N.A. ("Bank") may determine in its discretion, not to exceed ninety-five percent (95%).
4. The IBLOC cannot be used for the purchase of securities or to pay off a margin loan that was used to purchase securities.
Securities-Backed Line of Credit (SBLOC)
An SBLOC is a low-cost alternative to traditional loans when liquidity needs arise.